Monday, 8 April 2013

EUR / USD signals for 8-4-2013


EUR / USD 8-4-2013

The spot rate is currently testing the upper limit of its medium-term bearish 

channel at1.3040 suggesting a decline. However, a break of this level will 

initiate a violent bullishchannel. Technical indicators provide sell signals and 

until the resistance is not broken the assumption of a decline is most likely. 

Bollinger bands are much iscardedas a result of a strong increase these days. 

Stabilization is expected in the short term. 

The spot rate is currently testing the upper limit of its channel, we suggest 2 

scenarios. The first one is the hypothesis of a decline where we recommend a 

sell on the level of 1.3040 with the 1st objective at 1.2980 and then at 1.2960. A 

breakthrough of 1.3060 will invalidate this scenario. The second scenario is a 

break of its resistance where we advise a �buy stop� which means to buy the 

spot rate as soon as it is broken through its resistance of 1.3040 with the 1st 

objective at 1.3100 and then at 1.3120. A breakthrough of 1.3020 will invalidate 

this scenario.

Good luck

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